The term wholesale refers to the sale of new or used goods in large quantities to be retailed by others Wholesalers can either specialize in one kind of product, or they can sell a variety of products. Wholesalers who do not stock competing products are called distributors.

Wholesale occurs when products are purchased in bulk with the intent of reassembling, sorting, repackaging, or distributing the goods to retailers. Because the products are sold in bulk to the retailers, the retailers can charge a higher price to customers than they paid for the product from the wholesaler, thereby making a profit.

Buying wholesale is a popular option for many e-commerce sellers. It generally indicates the necessity of a wholesale license, and wholesalers take time to build quality relationships with manufacturers. These relationships prove to be assets later when sellers are ready to scale their business. In fact, the main difference between Amazon arbitrage or eBay arbitrage and wholesaling is the scalability of the business.

When determining how you will obtain, market, and sell your products it’s best to use an online product tool to understand associated costs and fees. With this crucial information, you can better identify which products will take you to the next level.

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